Heritage Foods reports 9% revenue growth in Q2 FY26

INDIA – Heritage Foods Limited has reported a 9% year-on-year revenue growth to US$126.14 million (INR 11,125.00 crore) in Q2 FY26, marking its second consecutive quarter above US$124.74 million (INR 11,000.00 crore).

The core engine of this growth was the company’s strategic focus on its Value-Added Products (VAP) portfolio.

VAP revenue expanded by a robust 18% to USD 46.88 million (INR 4,132.00 crore), now contributing a substantial 38% to the company’s total sales.

High-growth categories, including curd, paneer, drinkables, and ice cream, all registered double-digit growth.

This successful portfolio premiumization strategy allows Heritage Foods to mitigate risks associated with volatile commodity milk prices.

Despite the strong revenue growth, the company faced considerable pressure on profitability margins.

The EBITDA margin declined by 122 basis points, primarily due to a 6.3% increase in milk procurement costs, which outpaced a more modest 4.5% rise in realizations (selling prices).

Nonetheless, efficient cost management and strategic execution ensured that Profit After Tax (PAT) grew by 5% for the quarter, demonstrating controlled profitability during a cost-intensive period.

Operationally, the company maintained its market presence, with milk sales growing by 1.1% to 12.1 lakh liters per day.

Furthermore, Heritage Foods significantly expanded its market reach, adding 6,000 new retail outlets and increasing its distribution network by 60 points.

Strong financial and operational performance was also observed at the subsidiary, Heritage Nutrivet, which reported a 34% increase in revenue and an impressive 80% growth in PBT.

Looking forward, management expects margins to normalize as the industry enters the flush season, which typically brings improved milk availability and easing procurement costs.

Heritage Foods is reinforcing its market position through strategic initiatives, including a 60% increase in marketing spend and the launch of new products like Sampurna cow milk.

Additionally, an increased investment in automation and renewable energy to manage costs and drive sustainable growth is aligned with its Vision 2030 pillars of premiumization and sustainability.

Heritage Foods reports 10% revenue growth in Q1-FY26

Recently, the company reported 10% YoY revenue growth, surpassing INR 11,000 million (US$127.71 million) in quarterly revenue.

Milk sales rose by 2.8% YoY to 11.6 lakh litres per day (LLPD) in Q1FY26, driven by market expansion and strong brand momentum.

The average selling price increased to ₹56.4/litre from ₹ 54.8/litre last year, up 2.9%, reflecting stable market positioning and pricing strength.

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